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Chapter: 1 -Problem: 1 >> 1. What was Sam Walton’s original strategic vision for Wal-Mart? How did this enable the company to gain a competitive advantage? 2. How did Wal-Mart continue to strengthen its competitive advantage over time? 3. Explain how the expansion moves that Wal-Mart made in the 1990s made economic sense and helped to create value for the company’s shareholders. Wal-Mart is one of the most extraordinary su
Answer Preview: 1. Founder Sam Walton discovered that people living in rural areas would driv…

, Chapter: 13 -Problem: 8 >> 1. Identify Keurig’s business-level strategy. Has the company’s business-level strategy been successful?2. How does Keurig’s strategy stand up against competitive rivalry in the industry?3. Review the important elements of Keurig’s external and internal environments. Outline key factors in the SWOT analysis.4. Weigh the challenges confronting Keurig. What are the greatest risks for Keurig? What re
Answer Preview: 1. The purpose of a business-level strategy is to create differences between a firms position and those of its competitors. Base on the target market and basis for customer value, there are five busin…

, Chapter: 1 -Problem: 4 >> To what extent do you think that cognitive biases may have contributed to the global financial crisis that gripped financial markets in 2008–2009? Explain your answer.
Answer Preview: Cognitive biases prevent rational action and prevent lea…

, Chapter: 12 -Problem: 1 >> 1. Describe as much as you can of the organization architecture at Apple, and specifically, its organization structure, control systems, incentives, product development processes, and culture?2. What do you think is different about the way Apple is organized compared to most high technology firms?3. What is Apple trying to achieve with its current organization architecture? What are the strengths
Answer Preview: 1. Apple has a functional structure, where the VPs of different functions will report directly to the CEO. The culture of Apple is based on the compan…

, Chapter: 13 -Problem: 11 >> 1. Discuss MSO’s corporate governance. Has the company been able to separate the ownership and managerial control?2. Evaluate the effectiveness of MSO’s board of directors. Have the directors been able to monitor and control the company?3. Executive compensation is a method of governance mechanisms. Discuss Martha Stewart’s compensation and evaluate its effectiveness.4. Is MSO in financial trouble
Answer Preview: 1. Corporate governance is one of the most important topics in the business world today. Corporate governance represents the relationship among stakeholders that is used to determine and control the s…

, Chapter: 9 -Problem: 1 >> 1. How does consolidation improve airlines’ revenues? How might it improve their costs?2. Are there any disadvantages to the airlines of consolidating?3. Why do you think Southwest Airlines is (on average) the most profitable of the U.S. airlines? Should it attempt to integrate with other airlines? Why or why not? Apple’s management had concluded that overseas factories provided superior scale, fl
Answer Preview: 1. Industry consolidation makes it easier for carriers to announce changes such as charging for a second checked bag or the right to be seated first, …

, Chapter: 13 -Problem: 13 >> 1. What factors influenced the company’s decision to enter the heavyweight segment of the motorcycle market in the mid-1990s? Were industry conditions favorable for a new entrant at the time?2. In what ways was Polaris successful with the introduction of the Victory product line? What did the company do wrong?3. 15 years after entering the industry, describe current market conditions facing Polari
Answer Preview: 1. In the search of expansion opportunities, Polaris looked at various industries in terms of competition, size, service level, and trends before the companys attention was drawn to off-road motorcycl…

, Chapter: 13 -Problem: 10 >> 1. Characterize the type and level of diversification strategy employed by Luck Companies. Discuss the commonalities and differences of the company’s various divisions.2. Compare the different forms of the multidivisional structure for corporate-level strategies. Explain which form is most suited to meet the needs of Luck Companies.3. Evaluate Charles Luck’s ability to fulfill the strategic leader
Answer Preview: 1. Luck Companies operates four separate strategic business units (SBUs), each distinctly different in nature and managed under distinctly different brand identities. Luck Stone Luck Companies largest …

, Chapter: 11 -Problem: 1 >> 1. Why do you think Apotheker so eager to make an acquisition?2. Why do most acquisitions result in paying a premium over the market price? Was the 50% premium for Autonomy reasonable? 3. Was it unethical for Apotheker to propose the acquisition at the 50% premium? Was it unethical for Autonomy to go along with the price at a 50% premium? Who suffers the consequences of an overpriced acquisition?4
Answer Preview: 1. Apotheker was motivated to make an impactful acquisition to help transform HP from a hardware com…

, Chapter: 8 -Problem: 1 >> 1. Why do you think that Ford historically made different cars in different regions? What are the advantages of Ford’s historic strategy? What are the drawbacks?2. What global developments forced Ford to rethink its historic strategy?3. How will the One Ford strategy benefit Ford? What does this strategy mean for Ford’s ability to compete in established markets like the US and Europe, and emerging
Answer Preview: 1. Fords long-standing strategy of regional models was based upon the assumption that consumers in different regions had different tastes and preferen…

, Chapter: 13 -Problem: 12 >> 1. Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners.2. Assess the five competitive forces at work in the industry environment. Identify the forces that threaten the profitability of prevailing movie circuits, and prescribe the level of competition that can be anticipated amongst industry
Answer Preview: 1. The forces existing in the general environment are beyond the control of companies competing in the film industry. Nevertheless, these external conditions can create opportunities and/or threats th…

, Chapter: 13 -Problem: 3 >> 1. Outline the challenges of conducting business in Russia’s oil industry. Why is it strategically important for BP to secure a position in this market? 2. Who are the prominent stakeholders in this situation, and what important motivational factors underlie their behavior?3. Review the terms, nature, and timing of BP’s strategic alliances in Russia. What are the benefits and costs of the arrangem
Answer Preview: 1. Reforms in the early 1990s opened up Russias oil and gas industry to private enterprises. International environments typically carry political and economic risks for firms with business interests o…

, Chapter: 13 -Problem: 2 >> 1. Define American Express’s overall business-level strategy. Does Bank 2.0 fit into American Express’s overall business-level strategy?2. How does Bank 2.0 stand up against the competitors in the industry?3. What insights does a SWOT analysis reveal about how Bank 2.0 should be positioned in the future?4. Integrate the results of the analysis into recommendations for growing the business and comb
Answer Preview: 1. The purpose of a business-level strategy is to create differences between a firms position and those of its competitors. Base on the target market and basis for customer value, there are five busin…

, Chapter: 1 -Problem: 6 >> Pick the current or a past president of the United States and evaluate his performance against the leadership characteristics discussed in the text. On the basis of this comparison, do you think that the president was/is a good strategic leader? Why?
Answer Preview: Answering this question calls for students to rate the president according to the si…

, Chapter: 13 -Problem: 6 >> 1. Review IKEA’s general environment segments and elements in India. What are the segments in the general environment that relate to IKEA’s situation? 2. Describe IKEA’s intended international corporate-level strategy in India. Is it different from other countries?3. What is IKEA’s choice of international entry mode? What are the advantages and disadvantages compared to other international entry m
Answer Preview: 1. Factors in the general environment that impact IKEA in India are primarily demographic, economic, political/legal, sociocultural, and sustainable physical environment segments. The primary segments …

, Chapter: 12 -Problem: 1 >> What kind of structure best describes the way your (a) Business school(b) University operate? Why is the structure appropriate? Would another structure fit better?
Answer Preview: a & b. You may need to give students information about organization…

, Chapter: 6 -Problem: 1 >> 1. What advantages do traditional newspapers have for entering the online news business?2. How has the U.S. newspaper industry responded to news consumption moving to the web? The U.S. newspaper business is a declining industry, with the drop accelerating in recent years. The fall in advertising revenue has been very steep. The reasons for the declines in circulation and advertising revenue are no
Answer Preview: 1. Traditional newspapers can utilize their experience in providing news conte…

, Chapter: 5 -Problem: 2 >> Why is market segmentation such an important step in the process of formulating a business level strategy?
Answer Preview: Market segmentation refers to the process of subdividing a market into …

, Chapter: 13 -Problem: 1 >> 1. Define Amazon’s business-level strategy. Based on the analysis, what changes should Bezos make in his efforts to significantly differentiate the company?2. How does Amazon’s Kindle Fire strategy stand up against competitive rivalry in the industry?3. Describe the entrepreneurial characteristics of Amazon. How has Bezos promoted innovation within the organization?4. Is the current strategy for t
Answer Preview: 1. The purpose of a business-level strategy is to create differences between a firms position and those of its competitors. Base on the target market and basis for customer value, there are five busin…

, Chapter: 13 -Problem: 4 >> 1. Conduct an industry environment analysis. Is Carlsberg A/S in an attractive industry?2. Identify the reasons for Carlsberg A/S’ mergers and acquisitions (M&As)? What type of the M&A strategy does Carlsberg A/S use?3. Describe Carlsberg A/S’ international corporate-level strategy. 4. Integrating the results of the analysis, do you think Carlsberg A/S’ decision to go into the emerging markets is
Answer Preview: 1. An industry is a group of firms that produce similar products or offer similar services that are close substitutes. An industrys profit potential is a function of the five forces of competition: Th…

, Chapter: 5 -Problem: 1 >> 1. What is Nordstrom’s segmentation strategy? Who does it serve?2. Using the Porter model, which generic business level strategy is Nordstrom pursuing? Nordstrom is one of American’s­ most successful fashion retailers. John Nordstrom, a Swedish immigrant, established the company in 1901 with a single shoe store in Seattle. Right from the start, Nordstrom’s approach to business was to provide excep
Answer Preview: 1. Nordstrom focuses on an affluent customer base, provid…

, Chapter: 13 -Problem: 14 >> 1. Describe the general environment that Safaricom faces. What are the segments in the general environment that relate to Safaricom’s situation? What are the opportunities and threats derived from the factors from the general environment?2. Describe the competitor environment and identify the competitors. Has Safaricom done enough to outperform its competitors?3. Evaluate Safaricom’s CEO, Robert C
Answer Preview: 1. Segments in the general environment that impact Safaricom are primarily demographic, economic, political/legal, technological, and global segments. Africa is now the last untapped market in the tel…

, Chapter: 5 -Problem: 4 >> What is required to transform a business-level strategy from an idea into reality?
Answer Preview: The following functional strategies and organizational arrangements are required to transform a busi…

, Chapter: 3 -Problem: 1 >> 1. What resources underlie Verizon’s strong competitive position in the U.S. wireless tele-communications industry? 2. Apply the VRIO framework and describe to what extent these resources can be considered valuable, rare, inimitable, and well organized. Established in 2000 as a joint venture between Verizon Communications and Britain’s Vodafone, over the last 12 years Verizon Wireless has emerged
Answer Preview: 1. Verizon is the largest wireless phone network with nearly 136 million s…

, Chapter: 5 -Problem: 1 >> What are the main differences between a low cost strategy and a differentiation strategy?
Answer Preview: In commodity markets, competitive advantage goes to the company that has the lowest costs. Low costs …

, Chapter: 7 -Problem: 1 >> 1. What are the advantages and disadvantages of using cloud services for individuals and businesses?2. How does the adoption of cloud services affect the revenues for computer and software makers? Which companies will “win” and “lose” if individuals and businesses continue to shift to using cloud services?3. What forces would create pressure for a dominant cloud-based operating system to emerge?4.
Answer Preview: 1. There are significant cost advantages associated with shifting data and applications to the cloud. Business will no longer need to invest in information technology hardware that rapidly becomes obs…

, Chapter: 2 -Problem: 1 >> 1. Conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry?2. Do you think there are any strategic groups in the U.S. airline industry? If so, what might they be? How might the nature of competition vary from group to group?3. Given your analysis, what strategies do you think an airline should adopt
Answer Preview: 1. However, some of them may include the following points: Potential competitors: New entrants inclu…

, Chapter: 13 -Problem: 7 >> 1. Invitrogen has been very successful in the past. Explain the reasons why Invitrogen chose acquisitions as its strategy for growth and expansion.2. Are all Invitrogen’s acquisitions successful? What are the problems in achieving success?3. Evaluate Invitrogen’s CEO, Greg Lucier’s strategic leadership. Has he been able to expand the company and maintain the growth for the future?4. Evaluate Invit
Answer Preview: 1. Invitrogen was founded in 1987 and is now one of the largest life science companies in the industry. Invitrogens customers come from academic research, biotechnology and pharmaceutical companies, a…

, Chapter: 13 -Problem: 9 >> 1. Summarize the organizational strengths and core competencies which distinguish KIPP Houston from its competitors. Does the new regional structure advance or interfere with the goals of the organization?2. What are the weaknesses of KIPP Houston’s internal operations? Compare the organization’s performance to the achievements of its competitors. What steps have been taken to manage its problem a
Answer Preview: 1. KIPP Houston is a network of branded charter schools in the metro area. With innovative, energetic, motivational teaching techniques, it is an educational trailblazer in high-minority, low-income, …

, Chapter: 13 -Problem: 15 >> 1. Describe Siemens’ corporate-level strategy and characterize its level of diversification. Discuss the advantages and disadvantages of the company’s matrix organizational structure. Does the organization’s design effectively support the needs of Siemens’ corporate-level strategy? 2. Describe how the company structured its top+ program. Who was responsible for oversight and coordination of the bu
Answer Preview: 1. A corporate-level strategy specifies the actions firms take to gain competitive advantages through their selection and management of different business groups that compete in different product mark…

, Chapter: 5 -Problem: 3 >> How can a business-level strategy of(a) Low cost(b) Differentiation offer some protection against competitive forces in a company’s industry?
Answer Preview: (a) Low cost business-level strategy A low-cost enterprise can make profits at price points that its rivals cannot profitably match. This makes it ver…

, Chapter: 13 -Problem: 5 >> 1. Build a profile of the copper wire industry, and pinpoint Fisk Alloy Wire, Inc.’s distinct position within the industry. What tools did the company use to shape its strategic perspective?2. Describe the company’s acquisition of Strandflex and how it fits into Fisk Alloy Wire, Inc.’s overall strategic plans. 3. Given Fisk Alloy Wire, Inc.’s current market position, outline the market opportuniti
Answer Preview: 1. The metals industry distinguishes between commodity ore producers and specialty alloy manufacturers. In the copper and brass industry, high volume copper strip and wire is recognized for its conduc…

, Chapter: 7 -Problem: 6 >> Reread the Opening Case on the emerging standards battles in mobile payments. Which mobile payment system do you think will become dominant?
Answer Preview: Mobile payment systems offer the potential of enabling all users to perform financial transactions o…

, Chapter: 5 -Problem: 5 >> What do we mean by the term value innovation? Can you identify a company not discussed in the text that has established a strong competitive position through value innovation?
Answer Preview: Value innovation is used to describe what happen…

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9 Reviews for Strategic Management Theory and Cases An Integrated Approach Textbook Questions And Answers